For Non-Resident Indians, repatriating the proceeds from the sale of property in India back to their country of residence involves navigating specific legal, tax, and banking procedures. A clear understanding of these requirements is essential to ensure the process to repatriate property sale income is smooth, compliant, and cost-effective.
This comprehensive guide explains the key steps NRIs must follow to repatriate property sale proceeds, including eligibility limits, documentation, tax obligations, and the role of different bank accounts—enabling you to confidently manage your remittances without unnecessary delays or complications.
Step-by-Step Guide for Remitting Property Sale Proceeds from India
1. Eligibility and Annual Limits
NRIs are allowed to remit up to USD 1 million per financial year (April–March) from their NRO account, which includes proceeds from up to two residential or commercial properties.
🔸 This limit also includes other remittances like rent, dividends, interest, etc., made from the same NRO account.
2. Required Documentation
Proper paperwork is critical for a smooth remittance process. Here’s a checklist:
| Document | Purpose |
| Sale Deed | Proof of property sale |
| PAN Card & Passport (Self-attested) | Identity and tax compliance |
| Form 15CA & Form 15CB | Tax clearance and CA certification |
| Bank Statement (NRO account) | To trace the deposit of sale proceeds |
| Title/Ownership Documents | Legal ownership validation |
| Utility Bills or Tax Receipts | Optional, for address/ownership proof |
3. Capital Gains Tax and TDS Compliance
Tax on Capital Gains:
- Short-Term Capital Gains (held < 2 years): Taxed as per income tax slab.
- Long-Term Capital Gains (held ≥ 2 years): Taxed at 20% with indexation.
TDS Deduction:
- The buyer must deduct TDS @ 20% (or 30% in some cases) and deposit it with the government.
- NRIs can apply for a lower/NIL TDS certificate from the Income Tax Department under Section 195 to avoid excessive deductions.
4. Utilizing the NRO Account
All proceeds from the property sale must be deposited in the Non-Resident Ordinary (NRO) account. From here:
- Taxes must be cleared.
- Documentation (Forms 15CA/15CB) must be submitted.
- Remittance can then be processed through an Authorized Dealer (AD) bank.
5. Ensuring a Smooth Remittance Process
To avoid delays, make sure:
- You engage a Chartered Accountant to prepare Forms 15CA & 15CB.
- File and submit accurate documentation in advance.
- Liaise with your bank’s remittance desk for compliance updates.
Additional Tips for NRIs Repatriating Property Sale Funds
| Tip | Why It Matters |
| Apply for TDS relief early | Reduces blocked capital & tax refunds later |
| Use RBI-approved banking channels | Ensures smooth foreign remittance |
| Maintain clean documentation trail | Helps during audits or tax scrutiny |
| Consult NRI tax experts | Avoids compliance errors |
| Track foreign exchange conversion charges | Saves money on remittance transactions |
How NRI Simplify Can Assist You
At NRI Simplify, we specialize in simplifying the complex remittance journey for NRIs. Our end-to-end support covers:
- Legal Advisory: Guidance on documentation, registration, and PoA support
- Tax Planning: Assistance with capital gains computation and TDS certificates
- Realtor Support: Help in property sales, negotiations, and buyer liaison
- Repatriation & Banking: Coordination with authorized dealers and CA partners
✉️ Whether you’re selling property remotely or in person, our experts handle the heavy lifting so you can focus on your global goals.
Frequently Asked Questions (FAQs)
Q1: How much money can NRIs remit from property sale proceeds annually?
NRIs can remit up to USD 1 million per financial year from their NRO account, including up to two property sale transactions.
Q2: Can NRIs directly remit funds from an NRE account after selling property?
No. Proceeds must first be deposited into the NRO account, post which funds can be repatriated or moved to the NRE account after tax compliance.
Q3: Is Tax Deducted at Source (TDS) applicable on property sales by NRIs?
Yes. TDS is mandatory and varies based on the type of capital gain. NRIs can apply for lower or NIL TDS certificates to minimize deductions.
Q4: What documents are necessary for remitting property sale proceeds abroad?
Key documents include:
- Sale deed
- PAN card & passport
- Tax certificates (Form 15CA/CB)
- Proof of ownership
- NRO account details
Q5: How can NRIs minimize delays in remitting sale proceeds?
By:
- Paying all applicable taxes
- Submitting CA-certified documents
- Applying early for lower TDS certificates
- Staying in touch with your bank and advisor
Conclusion
Repatriating funds from India after a property sale doesn’t have to be overwhelming. With proper planning, the right bank accounts, expert help, and proactive tax compliance, NRIs can confidently repatriate property sale proceeds in a compliant and cost-effective manner.
👉 Need help with property sale and remittance in India?
Contact NRI Simplify today for end-to-end assistance — from legal paperwork to tax filing and bank coordination.
